Insurance on Jewelry

Always Carry Adequate Insurance on Jewelry

Certain holidays and anniversaries stand out as some of the biggest times of year for making fine jewelry purchases. While there are few greater pleasures than enjoying a sparkling new piece of jewelry, or the sentiment involved in receiving a new engagement ring, people sometimes make the importance of protecting these valuables an afterthought.

This could be a costly mistake if an expensive piece is lost or stolen, or an expensive stone falls out of its setting. Make sure to purchase insurance on jewelry to help provide you with the peace of mind you deserve for properly protecting your jewelry items.

Homeowners insurance often provides limited protection

It’s important to know how much personal property insurance coverage you currently have under your standard homeowners or renters policy. Remember that in most cases, you’ll be covered only up to a certain limit if a valuable piece of jewelry is stolen. Because the average value of an engagement ring in the US costs around $5,000, most standard insurance policies are not likely to cover the full value of the item.

With this knowledge in hand you may wisely decide to add additional coverage to insure the full cost should you need to replace the ring. This is called scheduling property, which simply means you’re increasing the amount of insurance coverage for an individual item.

For many high valued items, for example an engagement ring, the item is on a “schedule” and insured separately, and not covered under the general personal property limit. One can usually expect to pay somewhere in the neighborhood of $1-2 per $100 of the value of the item.

Keep the receipt from the purchase of a brand new ring or piece of jewelry as this can help determine the current value. Having prior insurance carrier declarations are also good documentation to have on hand if the item had been previously insured.

Once you have purchased insurance on jewelry, keep any current appraisal and policy information, along with any documentation about the piece in a safe place in the event that you ever need to make a claim. It’s recommended you also take pictures of the pieces (which should be included in a professional written appraisal). A covered loss is always better than an uncovered one.